Summer Internship at ICICI Bank

 

ICICI Bank – Bandra Kurla Complex

As I was en route Pune from Raipur to start my internship at ICICI Bank, I had no idea what to expect from the days which lay ahead. Being a fresher, I feared that my concept of ‘the office life’ would be far from reality. However, it was a necessary pill to be consumed as an MBA course would be incomplete without getting a taste of life at work. On the other hand, my internship at ICICI Bank could end up being an enriching experience which could change my perspective on a lot of things. With these thoughts in mind, I set foot into my office.

The first day began with a meeting with my mentor who discussed what his team in ICICI’s Pune branch looked into, what my project was about and what were his expectations from the project. This was followed by a quick round of introductions with the team I would eventually share my lunch and several rounds of ‘chai’ with in the coming weeks. Thus began my story at ICICI.

The first week simply went in figuring out how my office functions and how I could make any useful contribution with my project to an institution like ICICI. As the days passed, I started developing a better picture of what the project required. My mentor’s ideas and experience helped a great deal in this process as did the insights which came in from different members of the team. It was like trying to fix a complicated jigsaw puzzle, which seems impossible but acts as a trigger to the brain waves.

Each day of my summer internship at ICICI was a learning. Getting to see how the corporate finance division of a bank like ICICI functions was no less than a once in a lifetime opportunity. Concepts which I had come across in the textbooks of Financial Management in my first year at IIM Raipur started coming to life. It helped me appreciate the practicality of those concepts better. However, my most important learning was not concerned with understanding finance. It revolved around understanding people and witnessing how leadership helps drive results. I learnt some of my most important lessons so far on human behaviour through my interactions with ICICI Bank’s customers and by observing my team members. These takeaways would never become a part of my project report or my final presentation but they did become a part of an important chapter of my life.

The internship on the whole required nothing short of hard work and resilience. The period was filled with crests and troughs, where the crests were indicative of those moments where I felt I was closer to the project’s objective while the troughs represented the moments when I felt I was away from them. As the internship neared its end, my project managed to take shape and with a few nights spent burning the midnight oil, it reached a successful completion. As I wrapped it up with a final presentation to my mentor and the evaluating panel of ICICI Bank, I was left with a mixed feeling of happiness and a want for more. I could not help but feel that I could have done more and there were instances where I was surprised I managed to accomplish certain difficult feats. Perhaps, it was a normal phase to go through.

A significant chapter of my MBA life had come to an end. However, it lay the foundation to a number of new beginnings, some which I have already started exploring and some which will be explored when the time comes. But there is one advice which I had received from my mentor which I will carry forever, “Don’t be afraid of taking a path less trodden. Sometimes they are the ones that bring you closer to your life’s goals”. 

This article is written by Anwesha Dasgupta, of PGP 2013-15. She can be contacted at pgp13067.anwesha@iimraipur.ac.in

 

 

Profile gravatar of IIM Raipur Media and Public Relations Cell

IIM Raipur Media & PR Cell

Message Author

IIM Raipur’s Perspective On Times Warner And AT&T Merger

If the last quarter of 2016, saw journalists across the globe having a Trump up their sleeve, 2017 has already seen corporate action like never before. AT&T’s 109 Billion$ acquisition of the times warner group has kept tongues wagging for a while now.

AT&T is the world’s largest telecom company in terms of revenue and is also a giant in terms of media broadcasting (since its acquisition of DirecTV) in the United States. With a lineage in telecom that refers back to the originator of the telephone, AT&T has been diversifying its range of services over the past decade.

The Times Warner group is the parent company of the most famous content ever created. From Bugs Bunny at Warner Bros to Batman at DC, Warner has left no stone unturned in keeping audiences captivated. With revenues over 28 Billion$ in 2015, Times Warner proudly sat in the third position of the world’s largest entertainment companies.

“Content is King”, the cliché has never been as relevant as it may be today. Comcast’s acquisition of NBC Universal has shown how even the biggest entertainment companies in the world are working towards improving their standing. This is what makes this acquisition interesting.

Mergers are generally of two types, vertical and horizontal. Horizontal mergers are those, in which two competitors merge to create a firm which has a strong hold in the market. Vertical mergers, on the other hand, see organisations on different levels of the delivery chain merging to combine their expertise and resources. Economists are generally worried by Horizontal mergers because of the change in the market dynamic that they bring about. Certain horizontal mergers may completely change the functioning structure of the economy. This ensures economists keep a hawk’s eye on such mergers. The irony is that the Times Warner and AT&T merger, is not horizontal. They are not competitors, rather, Times Warner creates content that is broadcasted by AT&T. So wherein lies the problem? It lies in the size of the companies.

AT&T is the largest telecom company in the US. It also is amongst the top players in terms of Mobile communication and satellite television network. Currently, AT&T is an aggregator and distributor of the content that reaches its customers but with this deal, it will have a direct hold over a large part of that content. It will enable AT&T, to allow higher volumes of free and contracted content as a part of their service. This will almost wash away the competition in the space.

With president-elect, Mr. Donald Trump himself stating, “this deal will result in concentrating too much power in the hands of too few people”, the deal should have looked like a wipeout. But, with the magnitude of the players involved, Chinese whispers claim a change in tone by the Lawmakers.

In case the deal goes through, suggest that the government compromised on a level playing field. It just seems too big a risk for a government still in wet nappies, but what actually pans out, remains to be seen.

Profile gravatar of IIM Raipur Media and Public Relations Cell

IIM Raipur Media & PR Cell

Message Author

How To Beat The Interview Blues

On 9th of January, 2015, CAT results were declared to end the period of uncertainty and anxiety. After burning the midnight oil for months, I managed to score 96.79%ile overall with 99.8%ile in Verbal section being the highlight. As expected, I received calls from all the new IIMs. In the following few weeks, I did all I could to prepare myself for the second leg of the race.

So, the day had finally arrived. I still remember how I rushed to New Kenilworth Hotel, Kolkata, on the morning of 19th of March, 2016. Once all the candidates had gathered, we were directed to assemble in a hall and wait for further instructions. After waiting for about half an hour we were briefed about the process. After the brief, we were asked to get our documents and certificates verified.

Thereafter we moved to a different hall where the WAT was being conducted. Our topic was “Networking is more important than academics for success in life”. We were allotted 20 minutes to write. Writing a well-structured essay of 300 words in 20 minutes is a difficult task, unless you have regularly practised for it. I somehow managed to finish my write-up within the time limit though I could have concluded better.

Thereafter we went back to the waiting hall. After two long hours, I was called for the personal interview round. Interviews were being conducted in hotel rooms. I also sat outside one such room, and waited for my turn.

Sitting there, I was trying to arrange my documents for one last time, when a mid-30 guy opened the door and a candidate came out. While I was still measuring the level of exhaustion on the candidate’s face, the interviewer asked me to come in after two minutes. It may sound dramatic, but I had a flashback of my entire CAT journey in those two minutes.

Two minutes later, I knocked the door twice and then entered. The panel consisted of three interviewers, P1 (around 40, warm and jovial), P2 (around 45, mostly quiet and observant) and P3 (an elegant lady with perfect corporate looks). I greeted all the panellists and made myself comfortable on the chair once they asked me to sit.

P1: So Shreyash, is it your first time in Kolkata?

Me: No sir, I have been in Kolkata for the past three months for CAT preparation

P3: Interesting, so suggest us some places to hangout in Kolkata.

(At this moment I was really confused. Are they bored of interviewing and want to start on a different note or they just not interested in me?)

Me: Well sir, I haven’t explored Kolkata much but places like Chai Break, Backstage, Oly, etc, are really good.

(I wasn’t expecting such a question so my mind just froze and I just blurted whatever places I had been to in my time in Kolkata.)

P3: Interesting, by the way, by places I meant tourist spots.

(That moment I felt like killing myself!)

(While P2 was still looking at my file, P1 and P3 were busy giggling.)

P2: So, Shreyash tell us about your family.

Me: (I gave a crisp and structured answer. Before concluding the answer, I mentioned my family business as I wanted to take my interview in that direction.

(As expected, they asked me to elaborate on my family business and what role I played in it. I had an answer ready for this question so I answered it smoothly.)

P1: So, given that you have a decent family business, do you really think it’s wise to go for an MBA and invest 15lacs.

Me: (I told them how MBA education will help me in bringing a paradigm shift in my business and how it will be beneficial in the long run.)

(They listened to all that but weren’t convinced.)

P1: So, tell us something about yourself which is not mentioned in your CV.

Me: (I told them about my hobbies and the events that I had organised in my college.)

(After that they asked me some questions from my academic background. Though I graduated in Commerce but most of the questions were from Economics. I answered most of the questions.)

P1: Anything that you would like to ask?

Me: (Still too stumped to ask anything) No sir.

P1: Okay then, thank you.

Overall the experience was quite good. I was optimistic about chances and was praying to convert at least one of the new IIMs.

Three months later, results were declared and I converted all the new IIMs. Obviously, I chose IIM Raipur and I’m glad I made the right choice.

 

 

————–

About the Author:

Shreyash Kedia

Batch of 2016-18

IIM Raipur

Profile gravatar of IIM Raipur Media and Public Relations Cell

IIM Raipur Media & PR Cell

Message Author

Role Of RBI And Finance Ministry In Demonetization

On 8th November 2016, our Hon’ble Prime Minister Shri Narendra Modi, announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. The primary reason was that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity including terrorism.  The decision has been a huge one as, RBI estimations suggested that 16.5 billion and 6.7 billion notes of 500 and 1000 respectively were floating in the economy and all the cost that went on to print these had gone sunk which cannot be undermined (around ₹3 for printing one ₹1000 note). But the amount of collection of black money that govt. was expecting was definitely a lot more than that as almost 84% of the cash was in the notes of 500(45%) and 1000(39%).

The Reserve Bank of India had initially stipulated a window of fifty days until 30 December 2016 to deposit the demonetised banknotes as credit in bank accounts. The banknotes could also be exchanged over the counter of bank branches up to a limit that varied over the days. Initially, the limit was fixed at ₹4,000 per person from 8 to 13 November. This limit was increased to ₹4,500 per person from 14 to 17 November. The limit was reduced to ₹2,000 per person from 18 November. All exchange of banknotes was abruptly stopped from 25 November 2016. It is evident from the data known to us that over the period of the whole process RBI changed the guidelines several times. One of the major issues that RBI faced was the fact that the ATMs needed recalibration because the sizes of the new notes were not compatible with the old calibration. Finance Minister Arun Jaitley said ATMs had not been calibrated before the announcement to demonetise Rs 500 and Rs 1,000 notes to maintain secrecy. “It is a massive operation, it will take time.”Re-calibration of ATMs involved multiple agencies – banks, ATM manufacturers, National Payment Corporation of India (NPCI), Switch Operators, etc., and multiple activities making it a complex operation requiring immense coordination among these agencies. With a view to providing direction and guidance in this regard, it decided to set up a Task Force under the Chairmanship of Shri S. S. Mundra, Deputy Governor, Reserve Bank of India. Consequent to the announcement of withdrawal of Legal Tender status of banknotes of Rs 500 and Rs 1000 denominations from the midnight of November 8, 2016, the Reserve Bank of India also made arrangements for exchange and /or deposit of such notes at the counters of the Reserve Bank and commercial banks, Regional Rural banks and Urban Cooperative Banks.

According to sources, 97% of the demonetised bank notes have been deposited into banks which have received a total of ₹14.97 trillion ($220 billion) as of December 30 out of the ₹15.4 trillion that was demonetised. This is against the government’s initial estimate that ₹3 trillion would not return to the banking system. Of the ₹15.4 trillion demonetised in the form of ₹500 and ₹1000 bank notes of the Mahatma Gandhi Series, ₹9.2 trillion in the form of ₹500 and ₹2000 bank notes of the Mahatma Gandhi New Series has been re-circulated as of 10 January 2017, two months after the demonetization.

Legal framework behind the step:

“What gives the government the powers to declare legal tender illegal?”

Section 26 (2) of RBI Act gives these powers:

(2) On recommendation of the Central Board the [Central Government] may, by notification in the Gazette of India, declare that, with effect from such date as may be specified in the notification, any series of bank notes of any denomination shall cease to be legal tender 2 [save at such office or agency of the Bank and to such extent as may be specified in the notification].

What is the Central Board? It is the main body of RBI which governs the central bank and has 21 members. These directors are divided into official and non-official:

·         Official Directors

o    Full-time : Governor and not more than four Deputy Governors (which means 5 members)

·         Non-Official Directors

o    Nominated by Government: ten Directors from various fields and two government Official (10 + 2)

So before any decision is taken, the Ministry of Finance had an important role to play in case of the recent demonetisation. According to NDTV reports, Prime Minister Narendra Modi handpicked a trusted bureaucrat, little known outside India’s financial circles, to spearhead a radical move to abolish 86 percent of the country’s cash overnight and take aim at the huge shadow economy. Hasmukh Adhia, the bureaucrat, and five others privy to the plan were sworn to utmost secrecy, say sources with knowledge of the matter. They were supported by a young team of researchers working in two rooms at Prime Minister Modi’s residence, as he plotted his boldest reform since coming to power in 2014. And that’s how the whole plan was charted secretly and the suddenness of the feat was accomplished.  This has been a special case where depending on the need of the situations, guidelines had been changed. Overall we can say, the step to a certain extent was a well calculated one but the execution didn’t go smooth.  The banking officials worked tirelessly day and night, and with a bit of sacrifice from our fellow countrymen, this feat was achieved.

Profile gravatar of IIM Raipur Media and Public Relations Cell

IIM Raipur Media & PR Cell

Message Author


Message Author

On 8th November 2016, our Hon’ble Prime Minister Shri Narendra Modi, announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. The primary reason was that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity including terrorism.  The decision has been a huge one as, RBI estimations suggested that 16.5 billion and 6.7 billion notes of 500 and 1000 respectively were floating in the economy and all the cost that went on to print these had gone sunk which cannot be undermined (around ₹3 for printing one ₹1000 note). But the amount of collection of black money that govt. was expecting was definitely a lot more than that as almost 84% of the cash was in the notes of 500(45%) and 1000(39%).

The Reserve Bank of India had initially stipulated a window of fifty days until 30 December 2016 to deposit the demonetised banknotes as credit in bank accounts. The banknotes could also be exchanged over the counter of bank branches up to a limit that varied over the days. Initially, the limit was fixed at ₹4,000 per person from 8 to 13 November. This limit was increased to ₹4,500 per person from 14 to 17 November. The limit was reduced to ₹2,000 per person from 18 November. All exchange of banknotes was abruptly stopped from 25 November 2016. It is evident from the data known to us that over the period of the whole process RBI changed the guidelines several times. One of the major issues that RBI faced was the fact that the ATMs needed recalibration because the sizes of the new notes were not compatible with the old calibration. Finance Minister Arun Jaitley said ATMs had not been calibrated before the announcement to demonetise Rs 500 and Rs 1,000 notes to maintain secrecy. “It is a massive operation, it will take time.”Re-calibration of ATMs involved multiple agencies – banks, ATM manufacturers, National Payment Corporation of India (NPCI), Switch Operators, etc., and multiple activities making it a complex operation requiring immense coordination among these agencies. With a view to providing direction and guidance in this regard, it decided to set up a Task Force under the Chairmanship of Shri S. S. Mundra, Deputy Governor, Reserve Bank of India. Consequent to the announcement of withdrawal of Legal Tender status of banknotes of Rs 500 and Rs 1000 denominations from the midnight of November 8, 2016, the Reserve Bank of India also made arrangements for exchange and /or deposit of such notes at the counters of the Reserve Bank and commercial banks, Regional Rural banks and Urban Cooperative Banks.

According to sources, 97% of the demonetised bank notes have been deposited into banks which have received a total of ₹14.97 trillion ($220 billion) as of December 30 out of the ₹15.4 trillion that was demonetised. This is against the government’s initial estimate that ₹3 trillion would not return to the banking system. Of the ₹15.4 trillion demonetised in the form of ₹500 and ₹1000 bank notes of the Mahatma Gandhi Series, ₹9.2 trillion in the form of ₹500 and ₹2000 bank notes of the Mahatma Gandhi New Series has been re-circulated as of 10 January 2017, two months after the demonetization.

Legal framework behind the step:

“What gives the government the powers to declare legal tender illegal?”

Section 26 (2) of RBI Act gives these powers:

(2) On recommendation of the Central Board the [Central Government] may, by notification in the Gazette of India, declare that, with effect from such date as may be specified in the notification, any series of bank notes of any denomination shall cease to be legal tender 2 [save at such office or agency of the Bank and to such extent as may be specified in the notification].

What is the Central Board? It is the main body of RBI which governs the central bank and has 21 members. These directors are divided into official and non-official:

·         Official Directors

o    Full-time : Governor and not more than four Deputy Governors (which means 5 members)

·         Non-Official Directors

o    Nominated by Government: ten Directors from various fields and two government Official (10 + 2)

So before any decision is taken, the Ministry of Finance had an important role to play in case of the recent demonetisation. According to NDTV reports, Prime Minister Narendra Modi handpicked a trusted bureaucrat, little known outside India’s financial circles, to spearhead a radical move to abolish 86 percent of the country’s cash overnight and take aim at the huge shadow economy. Hasmukh Adhia, the bureaucrat, and five others privy to the plan were sworn to utmost secrecy, say sources with knowledge of the matter. They were supported by a young team of researchers working in two rooms at Prime Minister Modi’s residence, as he plotted his boldest reform since coming to power in 2014. And that’s how the whole plan was charted secretly and the suddenness of the feat was accomplished.  This has been a special case where depending on the need of the situations, guidelines had been changed. Overall we can say, the step to a certain extent was a well calculated one but the execution didn’t go smooth.  The banking officials worked tirelessly day and night, and with a bit of sacrifice from our fellow countrymen, this feat was achieved.

Profile gravatar of IIM Raipur Media and Public Relations Cell

IIM Raipur Media & PR Cell

Message Author


Message Author

On 8th November 2016, our Hon’ble Prime Minister Shri Narendra Modi, announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. The primary reason was that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity including terrorism.  The decision has been a huge one as, RBI estimations suggested that 16.5 billion and 6.7 billion notes of 500 and 1000 respectively were floating in the economy and all the cost that went on to print these had gone sunk which cannot be undermined (around ₹3 for printing one ₹1000 note). But the amount of collection of black money that govt. was expecting was definitely a lot more than that as almost 84% of the cash was in the notes of 500(45%) and 1000(39%).

The Reserve Bank of India had initially stipulated a window of fifty days until 30 December 2016 to deposit the demonetised banknotes as credit in bank accounts. The banknotes could also be exchanged over the counter of bank branches up to a limit that varied over the days. Initially, the limit was fixed at ₹4,000 per person from 8 to 13 November. This limit was increased to ₹4,500 per person from 14 to 17 November. The limit was reduced to ₹2,000 per person from 18 November. All exchange of banknotes was abruptly stopped from 25 November 2016. It is evident from the data known to us that over the period of the whole process RBI changed the guidelines several times. One of the major issues that RBI faced was the fact that the ATMs needed recalibration because the sizes of the new notes were not compatible with the old calibration. Finance Minister Arun Jaitley said ATMs had not been calibrated before the announcement to demonetise Rs 500 and Rs 1,000 notes to maintain secrecy. “It is a massive operation, it will take time.”Re-calibration of ATMs involved multiple agencies – banks, ATM manufacturers, National Payment Corporation of India (NPCI), Switch Operators, etc., and multiple activities making it a complex operation requiring immense coordination among these agencies. With a view to providing direction and guidance in this regard, it decided to set up a Task Force under the Chairmanship of Shri S. S. Mundra, Deputy Governor, Reserve Bank of India. Consequent to the announcement of withdrawal of Legal Tender status of banknotes of Rs 500 and Rs 1000 denominations from the midnight of November 8, 2016, the Reserve Bank of India also made arrangements for exchange and /or deposit of such notes at the counters of the Reserve Bank and commercial banks, Regional Rural banks and Urban Cooperative Banks.

According to sources, 97% of the demonetised bank notes have been deposited into banks which have received a total of ₹14.97 trillion ($220 billion) as of December 30 out of the ₹15.4 trillion that was demonetised. This is against the government’s initial estimate that ₹3 trillion would not return to the banking system. Of the ₹15.4 trillion demonetised in the form of ₹500 and ₹1000 bank notes of the Mahatma Gandhi Series, ₹9.2 trillion in the form of ₹500 and ₹2000 bank notes of the Mahatma Gandhi New Series has been re-circulated as of 10 January 2017, two months after the demonetization.

Legal framework behind the step:

“What gives the government the powers to declare legal tender illegal?”

Section 26 (2) of RBI Act gives these powers:

(2) On recommendation of the Central Board the [Central Government] may, by notification in the Gazette of India, declare that, with effect from such date as may be specified in the notification, any series of bank notes of any denomination shall cease to be legal tender 2 [save at such office or agency of the Bank and to such extent as may be specified in the notification].

What is the Central Board? It is the main body of RBI which governs the central bank and has 21 members. These directors are divided into official and non-official:

·         Official Directors

o    Full-time : Governor and not more than four Deputy Governors (which means 5 members)

·         Non-Official Directors

o    Nominated by Government: ten Directors from various fields and two government Official (10 + 2)

So before any decision is taken, the Ministry of Finance had an important role to play in case of the recent demonetisation. According to NDTV reports, Prime Minister Narendra Modi handpicked a trusted bureaucrat, little known outside India’s financial circles, to spearhead a radical move to abolish 86 percent of the country’s cash overnight and take aim at the huge shadow economy. Hasmukh Adhia, the bureaucrat, and five others privy to the plan were sworn to utmost secrecy, say sources with knowledge of the matter. They were supported by a young team of researchers working in two rooms at Prime Minister Modi’s residence, as he plotted his boldest reform since coming to power in 2014. And that’s how the whole plan was charted secretly and the suddenness of the feat was accomplished.  This has been a special case where depending on the need of the situations, guidelines had been changed. Overall we can say, the step to a certain extent was a well calculated one but the execution didn’t go smooth.  The banking officials worked tirelessly day and night, and with a bit of sacrifice from our fellow countrymen, this feat was achieved.

Profile gravatar of IIM Raipur Media and Public Relations Cell

IIM Raipur Media & PR Cell

Message Author


Message Author

On 8th November 2016, our Hon’ble Prime Minister Shri Narendra Modi, announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. The primary reason was that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity including terrorism.  The decision has been a huge one as, RBI estimations suggested that 16.5 billion and 6.7 billion notes of 500 and 1000 respectively were floating in the economy and all the cost that went on to print these had gone sunk which cannot be undermined (around ₹3 for printing one ₹1000 note). But the amount of collection of black money that govt. was expecting was definitely a lot more than that as almost 84% of the cash was in the notes of 500(45%) and 1000(39%).

The Reserve Bank of India had initially stipulated a window of fifty days until 30 December 2016 to deposit the demonetised banknotes as credit in bank accounts. The banknotes could also be exchanged over the counter of bank branches up to a limit that varied over the days. Initially, the limit was fixed at ₹4,000 per person from 8 to 13 November. This limit was increased to ₹4,500 per person from 14 to 17 November. The limit was reduced to ₹2,000 per person from 18 November. All exchange of banknotes was abruptly stopped from 25 November 2016. It is evident from the data known to us that over the period of the whole process RBI changed the guidelines several times. One of the major issues that RBI faced was the fact that the ATMs needed recalibration because the sizes of the new notes were not compatible with the old calibration. Finance Minister Arun Jaitley said ATMs had not been calibrated before the announcement to demonetise Rs 500 and Rs 1,000 notes to maintain secrecy. “It is a massive operation, it will take time.”Re-calibration of ATMs involved multiple agencies – banks, ATM manufacturers, National Payment Corporation of India (NPCI), Switch Operators, etc., and multiple activities making it a complex operation requiring immense coordination among these agencies. With a view to providing direction and guidance in this regard, it decided to set up a Task Force under the Chairmanship of Shri S. S. Mundra, Deputy Governor, Reserve Bank of India. Consequent to the announcement of withdrawal of Legal Tender status of banknotes of Rs 500 and Rs 1000 denominations from the midnight of November 8, 2016, the Reserve Bank of India also made arrangements for exchange and /or deposit of such notes at the counters of the Reserve Bank and commercial banks, Regional Rural banks and Urban Cooperative Banks.

According to sources, 97% of the demonetised bank notes have been deposited into banks which have received a total of ₹14.97 trillion ($220 billion) as of December 30 out of the ₹15.4 trillion that was demonetised. This is against the government’s initial estimate that ₹3 trillion would not return to the banking system. Of the ₹15.4 trillion demonetised in the form of ₹500 and ₹1000 bank notes of the Mahatma Gandhi Series, ₹9.2 trillion in the form of ₹500 and ₹2000 bank notes of the Mahatma Gandhi New Series has been re-circulated as of 10 January 2017, two months after the demonetization.

Legal framework behind the step:

“What gives the government the powers to declare legal tender illegal?”

Section 26 (2) of RBI Act gives these powers:

(2) On recommendation of the Central Board the [Central Government] may, by notification in the Gazette of India, declare that, with effect from such date as may be specified in the notification, any series of bank notes of any denomination shall cease to be legal tender 2 [save at such office or agency of the Bank and to such extent as may be specified in the notification].

What is the Central Board? It is the main body of RBI which governs the central bank and has 21 members. These directors are divided into official and non-official:

·         Official Directors

o    Full-time : Governor and not more than four Deputy Governors (which means 5 members)

·         Non-Official Directors

o    Nominated by Government: ten Directors from various fields and two government Official (10 + 2)

So before any decision is taken, the Ministry of Finance had an important role to play in case of the recent demonetisation. According to NDTV reports, Prime Minister Narendra Modi handpicked a trusted bureaucrat, little known outside India’s financial circles, to spearhead a radical move to abolish 86 percent of the country’s cash overnight and take aim at the huge shadow economy. Hasmukh Adhia, the bureaucrat, and five others privy to the plan were sworn to utmost secrecy, say sources with knowledge of the matter. They were supported by a young team of researchers working in two rooms at Prime Minister Modi’s residence, as he plotted his boldest reform since coming to power in 2014. And that’s how the whole plan was charted secretly and the suddenness of the feat was accomplished.  This has been a special case where depending on the need of the situations, guidelines had been changed. Overall we can say, the step to a certain extent was a well calculated one but the execution didn’t go smooth.  The banking officials worked tirelessly day and night, and with a bit of sacrifice from our fellow countrymen, this feat was achieved.

Profile gravatar of IIM Raipur Media and Public Relations Cell

IIM Raipur Media & PR Cell

Message Author


Message Author

On 8th November 2016, our Hon’ble Prime Minister Shri Narendra Modi, announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. The primary reason was that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity including terrorism.  The decision has been a huge one as, RBI estimations suggested that 16.5 billion and 6.7 billion notes of 500 and 1000 respectively were floating in the economy and all the cost that went on to print these had gone sunk which cannot be undermined (around ₹3 for printing one ₹1000 note). But the amount of collection of black money that govt. was expecting was definitely a lot more than that as almost 84% of the cash was in the notes of 500(45%) and 1000(39%).

The Reserve Bank of India had initially stipulated a window of fifty days until 30 December 2016 to deposit the demonetised banknotes as credit in bank accounts. The banknotes could also be exchanged over the counter of bank branches up to a limit that varied over the days. Initially, the limit was fixed at ₹4,000 per person from 8 to 13 November. This limit was increased to ₹4,500 per person from 14 to 17 November. The limit was reduced to ₹2,000 per person from 18 November. All exchange of banknotes was abruptly stopped from 25 November 2016. It is evident from the data known to us that over the period of the whole process RBI changed the guidelines several times. One of the major issues that RBI faced was the fact that the ATMs needed recalibration because the sizes of the new notes were not compatible with the old calibration. Finance Minister Arun Jaitley said ATMs had not been calibrated before the announcement to demonetise Rs 500 and Rs 1,000 notes to maintain secrecy. “It is a massive operation, it will take time.”Re-calibration of ATMs involved multiple agencies – banks, ATM manufacturers, National Payment Corporation of India (NPCI), Switch Operators, etc., and multiple activities making it a complex operation requiring immense coordination among these agencies. With a view to providing direction and guidance in this regard, it decided to set up a Task Force under the Chairmanship of Shri S. S. Mundra, Deputy Governor, Reserve Bank of India. Consequent to the announcement of withdrawal of Legal Tender status of banknotes of Rs 500 and Rs 1000 denominations from the midnight of November 8, 2016, the Reserve Bank of India also made arrangements for exchange and /or deposit of such notes at the counters of the Reserve Bank and commercial banks, Regional Rural banks and Urban Cooperative Banks.

According to sources, 97% of the demonetised bank notes have been deposited into banks which have received a total of ₹14.97 trillion ($220 billion) as of December 30 out of the ₹15.4 trillion that was demonetised. This is against the government’s initial estimate that ₹3 trillion would not return to the banking system. Of the ₹15.4 trillion demonetised in the form of ₹500 and ₹1000 bank notes of the Mahatma Gandhi Series, ₹9.2 trillion in the form of ₹500 and ₹2000 bank notes of the Mahatma Gandhi New Series has been re-circulated as of 10 January 2017, two months after the demonetization.

Legal framework behind the step:

“What gives the government the powers to declare legal tender illegal?”

Section 26 (2) of RBI Act gives these powers:

(2) On recommendation of the Central Board the [Central Government] may, by notification in the Gazette of India, declare that, with effect from such date as may be specified in the notification, any series of bank notes of any denomination shall cease to be legal tender 2 [save at such office or agency of the Bank and to such extent as may be specified in the notification].

What is the Central Board? It is the main body of RBI which governs the central bank and has 21 members. These directors are divided into official and non-official:

·         Official Directors

o    Full-time : Governor and not more than four Deputy Governors (which means 5 members)

·         Non-Official Directors

o    Nominated by Government: ten Directors from various fields and two government Official (10 + 2)

So before any decision is taken, the Ministry of Finance had an important role to play in case of the recent demonetisation. According to NDTV reports, Prime Minister Narendra Modi handpicked a trusted bureaucrat, little known outside India’s financial circles, to spearhead a radical move to abolish 86 percent of the country’s cash overnight and take aim at the huge shadow economy. Hasmukh Adhia, the bureaucrat, and five others privy to the plan were sworn to utmost secrecy, say sources with knowledge of the matter. They were supported by a young team of researchers working in two rooms at Prime Minister Modi’s residence, as he plotted his boldest reform since coming to power in 2014. And that’s how the whole plan was charted secretly and the suddenness of the feat was accomplished.  This has been a special case where depending on the need of the situations, guidelines had been changed. Overall we can say, the step to a certain extent was a well calculated one but the execution didn’t go smooth.  The banking officials worked tirelessly day and night, and with a bit of sacrifice from our fellow countrymen, this feat was achieved.

Profile gravatar of IIM Raipur Media and Public Relations Cell

IIM Raipur Media & PR Cell

Message Author


Message Author

On 8th November 2016, our Hon’ble Prime Minister Shri Narendra Modi, announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. The primary reason was that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity including terrorism.  The decision has been a huge one as, RBI estimations suggested that 16.5 billion and 6.7 billion notes of 500 and 1000 respectively were floating in the economy and all the cost that went on to print these had gone sunk which cannot be undermined (around ₹3 for printing one ₹1000 note). But the amount of collection of black money that govt. was expecting was definitely a lot more than that as almost 84% of the cash was in the notes of 500(45%) and 1000(39%).

The Reserve Bank of India had initially stipulated a window of fifty days until 30 December 2016 to deposit the demonetised banknotes as credit in bank accounts. The banknotes could also be exchanged over the counter of bank branches up to a limit that varied over the days. Initially, the limit was fixed at ₹4,000 per person from 8 to 13 November. This limit was increased to ₹4,500 per person from 14 to 17 November. The limit was reduced to ₹2,000 per person from 18 November. All exchange of banknotes was abruptly stopped from 25 November 2016. It is evident from the data known to us that over the period of the whole process RBI changed the guidelines several times. One of the major issues that RBI faced was the fact that the ATMs needed recalibration because the sizes of the new notes were not compatible with the old calibration. Finance Minister Arun Jaitley said ATMs had not been calibrated before the announcement to demonetise Rs 500 and Rs 1,000 notes to maintain secrecy. “It is a massive operation, it will take time.”Re-calibration of ATMs involved multiple agencies – banks, ATM manufacturers, National Payment Corporation of India (NPCI), Switch Operators, etc., and multiple activities making it a complex operation requiring immense coordination among these agencies. With a view to providing direction and guidance in this regard, it decided to set up a Task Force under the Chairmanship of Shri S. S. Mundra, Deputy Governor, Reserve Bank of India. Consequent to the announcement of withdrawal of Legal Tender status of banknotes of Rs 500 and Rs 1000 denominations from the midnight of November 8, 2016, the Reserve Bank of India also made arrangements for exchange and /or deposit of such notes at the counters of the Reserve Bank and commercial banks, Regional Rural banks and Urban Cooperative Banks.

According to sources, 97% of the demonetised bank notes have been deposited into banks which have received a total of ₹14.97 trillion ($220 billion) as of December 30 out of the ₹15.4 trillion that was demonetised. This is against the government’s initial estimate that ₹3 trillion would not return to the banking system. Of the ₹15.4 trillion demonetised in the form of ₹500 and ₹1000 bank notes of the Mahatma Gandhi Series, ₹9.2 trillion in the form of ₹500 and ₹2000 bank notes of the Mahatma Gandhi New Series has been re-circulated as of 10 January 2017, two months after the demonetization.

Legal framework behind the step:

“What gives the government the powers to declare legal tender illegal?”

Section 26 (2) of RBI Act gives these powers:

(2) On recommendation of the Central Board the [Central Government] may, by notification in the Gazette of India, declare that, with effect from such date as may be specified in the notification, any series of bank notes of any denomination shall cease to be legal tender 2 [save at such office or agency of the Bank and to such extent as may be specified in the notification].

What is the Central Board? It is the main body of RBI which governs the central bank and has 21 members. These directors are divided into official and non-official:

·         Official Directors

o    Full-time : Governor and not more than four Deputy Governors (which means 5 members)

·         Non-Official Directors

o    Nominated by Government: ten Directors from various fields and two government Official (10 + 2)

So before any decision is taken, the Ministry of Finance had an important role to play in case of the recent demonetisation. According to NDTV reports, Prime Minister Narendra Modi handpicked a trusted bureaucrat, little known outside India’s financial circles, to spearhead a radical move to abolish 86 percent of the country’s cash overnight and take aim at the huge shadow economy. Hasmukh Adhia, the bureaucrat, and five others privy to the plan were sworn to utmost secrecy, say sources with knowledge of the matter. They were supported by a young team of researchers working in two rooms at Prime Minister Modi’s residence, as he plotted his boldest reform since coming to power in 2014. And that’s how the whole plan was charted secretly and the suddenness of the feat was accomplished.  This has been a special case where depending on the need of the situations, guidelines had been changed. Overall we can say, the step to a certain extent was a well calculated one but the execution didn’t go smooth.  The banking officials worked tirelessly day and night, and with a bit of sacrifice from our fellow countrymen, this feat was achieved.

Profile gravatar of IIM Raipur Media and Public Relations Cell

IIM Raipur Media & PR Cell

Message Author


Message Author

On 8th November 2016, our Hon’ble Prime Minister Shri Narendra Modi, announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. The primary reason was that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity including terrorism.  The decision has been a huge one as, RBI estimations suggested that 16.5 billion and 6.7 billion notes of 500 and 1000 respectively were floating in the economy and all the cost that went on to print these had gone sunk which cannot be undermined (around ₹3 for printing one ₹1000 note). But the amount of collection of black money that govt. was expecting was definitely a lot more than that as almost 84% of the cash was in the notes of 500(45%) and 1000(39%).

The Reserve Bank of India had initially stipulated a window of fifty days until 30 December 2016 to deposit the demonetised banknotes as credit in bank accounts. The banknotes could also be exchanged over the counter of bank branches up to a limit that varied over the days. Initially, the limit was fixed at ₹4,000 per person from 8 to 13 November. This limit was increased to ₹4,500 per person from 14 to 17 November. The limit was reduced to ₹2,000 per person from 18 November. All exchange of banknotes was abruptly stopped from 25 November 2016. It is evident from the data known to us that over the period of the whole process RBI changed the guidelines several times. One of the major issues that RBI faced was the fact that the ATMs needed recalibration because the sizes of the new notes were not compatible with the old calibration. Finance Minister Arun Jaitley said ATMs had not been calibrated before the announcement to demonetise Rs 500 and Rs 1,000 notes to maintain secrecy. “It is a massive operation, it will take time.”Re-calibration of ATMs involved multiple agencies – banks, ATM manufacturers, National Payment Corporation of India (NPCI), Switch Operators, etc., and multiple activities making it a complex operation requiring immense coordination among these agencies. With a view to providing direction and guidance in this regard, it decided to set up a Task Force under the Chairmanship of Shri S. S. Mundra, Deputy Governor, Reserve Bank of India. Consequent to the announcement of withdrawal of Legal Tender status of banknotes of Rs 500 and Rs 1000 denominations from the midnight of November 8, 2016, the Reserve Bank of India also made arrangements for exchange and /or deposit of such notes at the counters of the Reserve Bank and commercial banks, Regional Rural banks and Urban Cooperative Banks.

According to sources, 97% of the demonetised bank notes have been deposited into banks which have received a total of ₹14.97 trillion ($220 billion) as of December 30 out of the ₹15.4 trillion that was demonetised. This is against the government’s initial estimate that ₹3 trillion would not return to the banking system. Of the ₹15.4 trillion demonetised in the form of ₹500 and ₹1000 bank notes of the Mahatma Gandhi Series, ₹9.2 trillion in the form of ₹500 and ₹2000 bank notes of the Mahatma Gandhi New Series has been re-circulated as of 10 January 2017, two months after the demonetization.

Legal framework behind the step:

“What gives the government the powers to declare legal tender illegal?”

Section 26 (2) of RBI Act gives these powers:

(2) On recommendation of the Central Board the [Central Government] may, by notification in the Gazette of India, declare that, with effect from such date as may be specified in the notification, any series of bank notes of any denomination shall cease to be legal tender 2 [save at such office or agency of the Bank and to such extent as may be specified in the notification].

What is the Central Board? It is the main body of RBI which governs the central bank and has 21 members. These directors are divided into official and non-official:

·         Official Directors

o    Full-time : Governor and not more than four Deputy Governors (which means 5 members)

·         Non-Official Directors

o    Nominated by Government: ten Directors from various fields and two government Official (10 + 2)

So before any decision is taken, the Ministry of Finance had an important role to play in case of the recent demonetisation. According to NDTV reports, Prime Minister Narendra Modi handpicked a trusted bureaucrat, little known outside India’s financial circles, to spearhead a radical move to abolish 86 percent of the country’s cash overnight and take aim at the huge shadow economy. Hasmukh Adhia, the bureaucrat, and five others privy to the plan were sworn to utmost secrecy, say sources with knowledge of the matter. They were supported by a young team of researchers working in two rooms at Prime Minister Modi’s residence, as he plotted his boldest reform since coming to power in 2014. And that’s how the whole plan was charted secretly and the suddenness of the feat was accomplished.  This has been a special case where depending on the need of the situations, guidelines had been changed. Overall we can say, the step to a certain extent was a well calculated one but the execution didn’t go smooth.  The banking officials worked tirelessly day and night, and with a bit of sacrifice from our fellow countrymen, this feat was achieved.

Profile gravatar of IIM Raipur Media and Public Relations Cell

IIM Raipur Media & PR Cell

Message Author